Fleet insurance guides, page 3

01Commercial auto and fleet insurance terms, M to Z

The rest of the glossary: what California fleet owners run into on renewal applications, permit forms and contracts, in plain English. Fleet insurance terms from A to L are on page 2.

M

• MC 65 M. The insurer's proof to DMV that a permitted carrier has liability coverage, often searched as "MCP 65." Under DMV's rules, the permit is suspended the day coverage ends without a replacement filing; see the MC 65 M filing, step by step.
• MCP (Motor Carrier Permit). DMV's 12-month permit for businesses running trucks with two or more axles rated over 10,000 lbs GVWR, or hauling property for pay. Private carriers often need one too; see which trucks need a permit.
• MCS-90. A federal endorsement tied to interstate trucking filings. A California fleet under a Motor Carrier Permit typically uses the MC 65 M instead, and we don't insure interstate trucking.
• Motor truck cargo. Coverage for goods lost or damaged on your truck, such as a distributor's deliveries; the auto policy typically doesn't cover the load. See cargo coverage for delivery trucks.
• MVR (motor vehicle record). A driver's DMV history of violations, accidents and license status. Check it before hire, at least yearly and after any incident; see hiring drivers and reading MVRs.

P to R

• Physical damage. Coverage for your own vehicles, made up of collision and comprehensive and usually chosen truck by truck. Some fleets pick specified causes of loss, a narrower list of perils, for older units.
• Primary and noncontributory. Contract wording asking your policy to pay first for the customer named, without the customer's own insurance sharing. It's added by endorsement when the carrier agrees.
• Radius. How far a vehicle usually travels from where it's garaged. It's often a rating factor, and telematics can replace an estimate with the real figure.
• Rental reimbursement. Optional coverage toward a replacement while a covered truck is down after a loss, up to daily and total caps. Caps sized for a car rarely cover a heavy truck.

S to Z

• Scheduled autos (symbol 7). Coverage usually limited to the vehicles listed on the policy, plus newly bought ones when its notice conditions are met. Many fleets add symbols 8 and 9; see scheduled autos or any auto.
• SR-1. The DMV report its rules generally call for within 10 days of a crash with more than $1,000 of property damage to any one person, or any injury or death. Your broker can file it; see steps after a company truck crash.
• Stated amount. A value you set for a truck, common for bodies and upfits. Many forms pay the smaller of that figure and actual cash value, so it often works as a cap; see valuing trucks with bodies and upfits.
• Telematics. Devices that log location, speed, braking and engine data. They tend to help most when someone reviews a short list of events and coaches from them; see telematics and fleet insurance.
• Uninsured and underinsured motorist (UM/UIM). Typically pays for injuries to people in your vehicle when the at-fault driver is uninsured, underinsured or gone. California's rules generally call for carriers to offer it, and declining takes a signed form; see uninsured motorist coverage on a business policy.
• USDOT number. FMCSA's carrier ID, which California generally requires of intrastate carriers ahead of the CA number. Federal rules call for an MCS-150 update every 24 months to keep it active, in a month set by the number's last digit.
• Waiver of subrogation. An endorsement, issued when the carrier approves it, in which your insurer agrees not to pursue the named customer to recover a claim it paid. Contracts often ask for it with additional insured status.